Update for members of Lee Bank / Highgate Credit Union

8th July 2011

The Financial Services Compensation Scheme (FSCS) has been notified of the closure of Lee Bank / Highgate Credit Union and we are aware that members of the credit union have been unable to access their money.

The FSCS is working with the Financial Services Authority (FSA) to establish whether or not Lee Bank / Highgate Credit Union is able to return savings to its members. If the credit union can’t pay back the money it owes its members, we will declare it ‘in default’ and will aim to pay compensation to eligible members in the majority of cases within seven days. We will aim to pay any remaining compensation claims (i.e. those that are likely to be more complex) within twenty working days. Members of the credit union will not need to apply for compensation – we expect to send their compensation to them automatically.

Lee Bank / Highgate Credit Union members do not need to contact the FSCS. Until we receive all the information about members’ accounts from the credit union, we are unable to answer any account specific questions that members may have. However, we will provide a further update on our website within the next 14 days.

Jargon Buster

  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • Eligible

    qualifying for compensation under Scheme rules.
  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.